Paying cash for a MHP

We have found a 22 space park, no POH, all city utilities, sub metered water, tenant pays everything else, the homes are even on city streets. We can’t get it financed b/c the owner’s t/r don’t at all resemble the P&L he provided, he has written off large expenses for other propreites as well as personal expenses. It’s priced at a 10.8 cap w/ 2 spaces vacant when filled will bump it to a 12 cap.

We are thinking of paying cash for this park and refiing once we own for a year to get our money out for a down payment to leverage on a larger facility. Since we are buying direct from the owner, we aren’t sure exactly how to handle all the title work, contract and due diligence.

Ques #1 - What do you think of paying cash for a property w/ thougths of refi in a year?

Ques #2 - Suggestions on finigns good RE Atty so we don’t get burned.

I’m kinda split down the middle on this one and it really comes down to what you want this property to do.

If you are old (like me) maybe you want a nice income stream…in my life cash flow is King. Paying cash can make sense.

If you are young and creating wealth, leverage is the game and I say tie up several larger propertises with this cash.

You also don’t say if paying cash will strap you or if this is simply stroking a check. I would hate to have all my money tied up in one deal…and refi’s are very iffy right now.

This Seller is aware the only way he can sell this is all cash. I would approach him with a Lease/Option and if I did buy all cash I would want a HUGE discount. By fudging his books, he has severely limited his Buyer pool and he knows this fact.

Please post how this turns out,

Greg